Staff at Powell Valley Hospital’s infusion center have seen costs of infusion drugs rise in recent years, but a recent analysis of the financial department shows that, so far at least, revenues are keeping pace.

At May’s hospital board meeting Monday, Chief Financial Officer Coby La Blue said an analysis for the infusion center due to consistent rising costs that far exceed the budget (revenues are also up as well) found revenues are covering the higher costs. She said they are still working on more analysis to determine ways to cut costs.

In January, infusion center drugs cost roughly $526,000 more than was budgeted, leading to worries from some board members.

“It seems like we're constantly taking a loss with infusion, since I’ve been on the board,” said board member Joni Bennett at the February meeting, adding “No hospital like us can survive constantly taking a hit.”

La Blue said in February closing the infusion center was not on the horizon and the analysis was meant to avoid that outcome.

“The last thing we want to do is to close the service,” she said.

At the May meeting, La Blue reiterated the financial viability of the center.

“We are generating a modest contribution margin,” she said. “We are covering all costs, providing resources to the rest of the organization … It’s a viable business for us and we plan to continue it.”

She said some of the increase in cost is from an influx of new patients after the closure of an infusion center in Cody.

Another big reason, she said, is the increased cost of some of the main chemo drugs used to combat cancer.

“Our volumes have increased exponentially,” she said. “We have a lot more chemo patients than we had in the past.”

La Blue said the analysis was done in concert with Dr. Carletta Collins and the hospital’s pharmacist. She said the doctor has to be comfortable before they consider changing to a bio similar drug to avoid one with a higher cost.

La Blue said another way to help lower costs would be to convince legislators to add these so-called “orphan” cancer drugs to the 340B program, in which manufacturers participating in Medicaid agree to provide outpatient drugs to covered entities at significantly reduced prices. She said she would get some important points to board members so they could help lobby.

An orphan drug is a drug used to treat, prevent, or diagnose an orphan disease. An orphan disease is a rare disease or condition that affects fewer than 200,000 people in the United States. Orphan diseases are often serious or life threatening. In 1983, the U.S. government passed a law, called the Orphan Drug Act, to give drug companies certain financial benefits for developing orphan drugs that are safe and effective.